§490:3-601 - Discharge and effect of discharge.

PART 6.  DISCHARGE AND PAYMENT

 

     §490:3-601  Discharge and effect of discharge.  (a)  The obligation of a party to pay the instrument is discharged as stated in this article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.

     (b)  Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge. [L 1991, c 118, pt of §1]